AIIEA demands 40 per cent pay hike

Chennai: The All India Insurance Employees'' Association (AIIEA) has decided to demand a wage hike of 40 per cent for the employees of Life Insurance Corporation of India (LIC) and the four government-owned non life insurers — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited.

The largest union in LIC and the second largest in the non-life sector, the AIIEA has decided to project identical demands for employees of all the five companies. According to the union, the effective date of wage revision would be from 1 August, 2007, for a period of five years. The present wage structure for non-life insurers comes to an end on July 31, 2007.

The union justifies its demand based on the performance of LIC and the 8.5 per cent growth logged by the four general insurers, the highest growth since the year 2000. The union has also demanded bonus at 25 per cent of the gross salary and an increase in provident fund contribution to 10 per cent of the revised pay with equal contribution by the employer.

However, wage revision negotiations in the government-owned insurance companies would take a couple of years to finalise. Incidentally, the development officers of the four non-life insurers have not yet received a salary revision from the last revision as the issue has been mired in court cases.